Pp&l Sells $125 Million In Bonds

March 10, 1988|The Morning Call

Pennsylvania Power & Light Co. this week sold $125 million of first mortgage bonds to an underwriting group consisting of First Boston Corp., Morgan Stanley & Co. Inc., Drexel Burnham Lambert Inc. and Salomon Brothers Inc.

Proceeds from the sale will be used by the Allentown-based utility to retire higher-cost short-term debt issued to provide interim financing for capital projects.

The bonds will be offered to the public by the underwriters at a cost of 99.68 percent of their face value. They will yield 9.3 percent.

The bonds cannot be refunded for the first five years with funds borrowed at an interest cost of less than 9.25 percent. Otherwise, they can be redeemed at 108.93 percent through Feb. 38, 1989, and declining annually to 100 percent after Feb. 28, 1995, with accrued interest.